What will the fixed deposit rate be if the Bank Negara increases 25 basis point in Jan?
The Federal Reserve is widely expected to continue raising interest rates in 2023 to combat domestic inflation in the United States, and Bank Negara Malaysia is expected to follow suit. Bank Negara’s interest rate hike is intended not only to prevent capital outflows and to prevent the ringgit from further depreciation, but also to reduce domestic inflation in our country.
If Bank Negara announces an increase in interest rates, the fixed deposit rate will soon follow. The current interest rates on 1-month, 3-month, 6-month, and 12-month fixed deposits are 2.50%p.a., 2.70%p.a., 2.80%p.a., and 2.85%p.a., respectively. If Bank Negara raises interest rates by 25 basis points, the 1-, 3-, 6-, and 12-month fixed deposit rates will be 2.75%p.a., 2.95%p.a., 3.05%p.a., and 3.10%p.a., respectively.
In the case of an RM5,000 deposit, the interest rate will be raised by 25 basis points, allowing the depositor to earn an additional RM1.04 per month. An additional interest of RM2.08 can be obtained by increasing the interest rate by 50 basis points.
If Bank Negara raises interest rates by 50 basis points for the first time, the 1-month, 3-month, 6-month, and 12-month fixed deposit rates will be 3.00%p.a., 3.20%p.a., 3.30%p.a., and 3.35%p.a., respectively.
Currently, some banks are offering a fixed deposit discount of 4.50% p.a. for 18 months. If Bank Negara continues to raise interest rates, you may be able to find a 4.50% p.a. fixed deposit for only 12 months.
Because Bank Negara may continue to raise interest rates in January and March, it is recommended that you choose short-term fixed deposits as much as possible when depositing fixed deposits, so that you can benefit from higher interest rates as soon as Bank Negara announces a rate hike. The interest rate on a fixed deposit.
Current Fixed Deposit Rates
1 month: 2.50% p.a.
3 months: 2.70% p.a.
6 months: 2.80% p.a.
12 months: 2.85% p.a.
Fixed deposit interest rate after 25 basis points hike
1 month: 2.75% p.a.
3 months: 2.95% p.a.
6 months: 3.05% p.a.
12 months: 3.10% p.a.
Fixed deposit rate after 50 basis point hike
1 month: 3.00% p.a.
3 months: 3.20% p.a.
6 months: 3.30% p.a.
12 months: 3.35% p.a.
